Finnvera's Guarantee supports Valmet and a group of other Finnish companies supply of machinery for building a cardboard factory in Türkiye
With a buyer credit guarantee, Finnvera guarantees the deliveries of Valmet and eight other Finnish companies to the Turkish Kıvanç Integrated Project mill. Kıvanç Tekstil is expanding its operations from textile production to cardboard manufacturing, and a new factory will be located in Adana, Türkiye. Recycled paper will be the main raw material of the cardboard.
Valmet supplies the factory with a cardboard machine, an OCC line and stock preparation and handling equipment. In addition, Textima Export Import GmbH (Germany) will cover deliveries by Raumaster Paper Oy, Valmet Flow Control Oy, Aikawa Fiber Technologies Oy, Runtech Systems Oy, ABB Oy Service through its subsidiary ABB Elektrik Sanayi A.Ş., Sulzer Pumps Finland Oy, Satron Instruments Inc. and Turun Asennusteam Oy (Finland).
The guaranteed credit amounts to approximately EUR 74.1 million.
Signing date of the Finnvera Guarantee Agreement: 1 July 2024
Name of the Guarantee Holder: DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main (Germany).
Name of the Exporters: Valmet Technologies Oy, Raumaster Paper Oy, Valmet Flow Control Oy, Aikawa Fiber Technologies Oy, Runtech Systems Oy, ABB Oy Service through its subsidiary ABB Elektrik Sanayi A.Ş., Sulzer Pumps Finland Oy, Satron Instruments Inc. and Turun Asennusteam Oy (Finland);
as well as Textima Export Import GmbH (Germany).
Name of the Lender: Finnish Export Credit Ltd (Finland)
Name of the Buyer: Kivanc Tekstil San. Ve Tic. A.S. (Türkiye)
Name of the Borrower: T. C. Ziraat Bankasi A.S. (Türkiye)
Project/ Goods: Kivanc Integrated Project of Paper Manufacturing Factory Including the following equipment: PM 1, OCC, stock preparation, valves, roll handling system step 1, broke roll cutter and core handling system, pom approach flow system, liquid ring pumps, motors, pumps and accessories, multi-channel consistency, valves-transmitter, chemical units and related services.
Country of Export transaction/project: Türkiye
Credit amount MEUR: 74,1
Credit period: 10 years
ES-risk classification: B
International standards applied in benchmarking: IFC Performance Standards 1-4 and and relevant Environmental, health and social guidelines.
Contact point: [email protected]
Environmental and social impact information: According to Finnvera’s ES risk classification and the OECD's Common Approaches agreement, the transaction is identified as a risk category B project. An Environmental and Social Due Diligence (ESDD) assessment was conducted for the project. An Environmental and Social Action Plan (ESAP) for the ES risks management has been developed and the measures have been assessed as suitable for the project. After ESAP implementation, the project follows Finnvera's ES policy.
Date of publication: 23 August 2024
